With onshore markets still closed,.......>

CHINA YUAN: With onshore markets still closed, USD/CNH trades +34 pips at

CNH6.9864. China will publish official PMI readings for January later today, the

first release since the beginning of Lunar New Year holidays. The data may

capture some early impact of spreading coronavirus.

- The novel disease has been the dominant theme over the last days, lending

support to USD/CNH. The rate repeatedly tested CNH7.0 level yesterday, before

gains were somewhat trimmed. The decision taken by WHO Emergency Committee to

declare a global health emergency soothed some nerves, raising hopes for a

broader, coordinated action against the virus.

- Per the most recent update, China confirmed 9.692 virus cases, 1,527 of them

severe. The death toll increased to 213.

- Analysts expect the Chinese government to deploy monetary and fiscal measures

to tackle the economic consequences of the novel coronavirus.

- From a technical perspective, the CNH7.0 remains in focus. Above there opens

the 50% retracement of the Sep 3 - Jan 20 bear market/100-DMA at CNH7.0211/48.

Bears look for a drop below the Jan 29 low of CNH6.9532 to get some reprieve.